|
Agenda Item
ASR
Control 19-000639 |
||
|
MEETING DATE: |
09/24/19 |
|
|
legal entity taking action: |
Board of Supervisors |
|
|
board of supervisors
district(s): |
3 |
|
|
SUBMITTING
Agency/Department: |
OC Public Works
(Approved) |
|
|
Department contact
person(s): |
Khalid Bazmi (714) 667-3213 |
|
|
|
Bryan Prieto (714) 645-7002 |
|
Subject: Award Construction Contract
for Juvenile Hall Multipurpose Rehabilitation Center
|
ceo CONCUR |
|
Clerk of the Board |
||||||||
|
Concur |
No Legal Objection |
Discussion |
||||||||
|
|
|
3 Votes Board Majority |
||||||||
|
|
|
|
||||||||
|
Budgeted: Yes |
Current Year Cost:
See Financial Impact Section |
Annual Cost:
See Financial Impact Section |
||||||||
|
|
|
|
||||||||
|
Staffing Impact: |
No |
# of Positions:
|
Sole Source:
No |
|||||||
|
Current Fiscal Year Revenue: N/A
|
||||||||||
|
Prior Board Action: 5/21/2019
#60, 9/13/2016 #30, 5/24/2016 #74, 9/22/2015 #45 |
||||||||||
RECOMMENDED ACTION(S):
|
1. |
Award construction contract to P.H. Hagopian Contractor, Inc. for the Juvenile Hall Multipurpose Rehabilitation Center Project in the amount of $17,839,000, which will go into effect after the State of California approves the financing.
|
|
2. |
Authorize the Director of OC Public Works or designee to execute the construction contract with P.H. Hagopian Contractor, Inc. after the required bonds and certificates of insurance have been submitted and approved by the County Executive Office/Office of Risk Management and County Counsel. |
|
3. |
Authorize return of bid guarantees to all bidders, upon execution of the contract. |
SUMMARY:
Award of the construction contract to P.H. Hagopian Contractor, Inc. for the Juvenile Hall Multipurpose Rehabilitation Center Project will provide for new building construction to support the rehabilitation of youthful offenders at the local level.
BACKGROUND INFORMATION:
With the passage of Senate Bill (SB) 81 (Stats. 2007, Chapter 175), the rehabilitation of youthful offenders in the State of California (State) shifted from state to local juvenile justice systems where rehabilitation can take place closer to each youth’s community. Among many provisions under SB 81, the Local Youthful Offender Rehabilitative Facilities (LYORF) Construction Financing Program authorized $300 million in state-issued lease-revenue bonds for the acquisition, design, renovation or construction of LYORFs to support the rehabilitation of youthful offenders at the local level.
On September 12, 2014, the Board of State and Community Corrections (BSCC) issued SB 81, Round Two Construction of LYORF Request for Proposals as authorized by Welfare and Institutions Code, Sections 1970-1978. For large counties, such as the County of Orange (County), $17.5 million was established as the maximum amount of state financing available.
On December 9, 2014, the Board of Supervisors (Board) adopted Resolution No. 14-105, authorizing the Chief Probation Officer to execute the applicant's agreement and submit a proposal to the BSCC for the maximum amount of $17.5 million to construct the Juvenile Hall Multipurpose Rehabilitation Center Project (Project) at the Juvenile Hall and Youth Leadership Academy campus. The proposal for the Project included a new visitation facility, program space and a gymnasium. The total Project cost at that time was estimated to be $23.33 million. As a requirement of SB 81, the County was to provide construction and project management services.
On April 9, 2015, the BSCC approved the financing recommendations of the Executive Steering Committee and issued the OC Probation Department (Probation) a conditional award of $17.5 million. Since that time, Probation has coordinated with OC Public Works to contract services for design, construction and construction management services for the proposed Project.
On September 22, 2015, the Board approved the Architect-Engineer (A-E) Agreement MA-080-16010397 with Lionakis to provide A-E design services to develop detailed plans and specifications required for construction of the Project.
On May 24, 2016, the Board approved Agreement MA-080-16011848 for Construction Management Services (Services) with Kitchell CEM, Inc. to provide Services during the construction phase of the Project.
On September 13, 2016, the Board adopted Resolution No. 16-087, amending Resolution No. 14-105, evidencing that the County appropriated Cash/In-Kind Match for the Project in an amount up to $6.68 million, including an in-kind match of $1.84 million in land value for the Project site, for a total Project cost not to exceed $24.4 million. Additionally, Resolution No. 16-087 approved various project forms and authorized the County Executive Officer (CEO) to execute said documents at the appropriate time.
On November 15, 2016, the California Department of Finance (DOF) granted Project Establishment for the Project after reviewing the Project scope, cost and milestone schedule submitted by Probation and OC Public Works. On March 2, 2017, the DOF approved the County’s Preliminary Plan under the authority from the State Public Works Board.
On January 9, 2019, as required for working drawing approval, the CEO executed the ground lease, the right of entry for construction and operation and the easement agreement for grant of access, utilities and repairs.
On May 10, 2019, the DOF approved the working drawings and authorized the County to bid the Project.
On May 21, 2019, the Board approved plans, specifications and bid documents, made CEQA findings and set the bid opening date for the Project that was advertised through the Invitation for Bids (IFB) process.
On May 21, 2019, OC Public Works issued contractor Pre-Qualification documents through the County online bidding system in an effort to select the most experienced, responsible and responsive contractors. Eleven contractors responded and were pre-qualified and approved to continue to the next step.
On June 18, 2019, OC Public Works issued an IFB to the 11 pre-qualified contractors for the Project.
The following summarizes the four bids received on July 31, 2019, and provides a comparison against the Engineer’s Estimate (EE):
|
|
Base Bid |
|
Engineer's Estimate |
$17,070,018 |
|
P.H. Hagopian Contractor, Inc. |
$17,839,000 |
|
Icon West, Inc. |
$17,995,000 |
|
Macro-Z-Technology Company |
$18,373,000 |
|
Pinner Construction Co., Inc. |
$19,795,000 |
A full summary of the four bids received can be found in the Bid Summary as Attachment C.
The lowest responsive and responsible bid submitted by P.H. Hagopian Contractor, Inc. (Contractor) for this Project is approximately 4.9 percent above the EE of $17 million. The bid includes standard allowances that may not be used for this Project, possibly lowering the total construction cost closer to the grant award amount of $17.5 million.
The Contractor's license number was verified as current and active through the Contractors State License Board database on August 5, 2019. A copy of the verification is on file.
OC Public Works has conducted due diligence on the Contractor. Reference checks were satisfactory and completed with the Moreno Valley High School District, the Santa Ana Unified High School District and Compton Community College regarding similar projects.
OC Public Works is recommending the Board approve Contract MA-080-20010184 (Contract) in a total not-to-exceed amount of $17,839,000 for a term effective upon execution by the Director of OC Public Works or designee.
This Contract includes subcontractors. See Attachment B for information regarding subcontractors and Contract Summary Form.
OC Public Works is procuring Services following the process outlined in Public Contract Code Section 22032 for this Project and in accordance with Section 4.5 of the 2019 Design and Procurement Construction Policy Manual.
Compliance with CEQA: This Project is a necessarily included element of the Project considered in Mitigated Negative Declaration (MND) No. IP 16-036, adopted by the Board on September 13, 2016, and Addendum No. IP 17-062 approved on May 11, 2017, which includes minor changes or additions necessary and both documents adequately address the effects of the proposed Project. No substantial changes have been made in the Project, no substantial changes have occurred in the circumstances under which the Project is being undertaken and no new information of substantial importance to the Project which was not known or could not have been known when MND No. IP 16-036 and Addendum No. IP 17-062 was approved has become known; therefore, no further environmental review is required.
FINANCIAL IMPACT:
Appropriations of $11.5 million for this Project are included in the FY 2019-20 Budget for Fund 104, Criminal Justice Facilities - Accumulative Capital Outlay, and the remaining $6.3 million will be included in the budgeting process for FY 2020-21. Funds shall be encumbered in phases as construction proceeds are needed due to timing of reimbursement from the State. BSCC awarded $17.5 million (SB 81, September 2014) for this Project. The County will receive reimbursement in the amount of $3.9 million during FY 2019-20 and $13.6 million during FY 2020-21 based on the actual construction completion and expenditure claims. Fund 104 has sufficient funding for the additional construction cost and soft cost over and above $17.5 million awarded by the State. Fund 104 will also require a loan from Fund 279, OC Waste & Recycling, due to timing of the reimbursement. Fund 104 will repay Fund 279 within the required three-year period. FY 2019-20 Approved Budget includes a $5 million loan from Fund 279 to Fund 104.
Notwithstanding any other provision of the Contract, the County may at any time and without cause terminate the Contract, in whole or in part, upon not less than 30 days written notice to the Contractor. Such termination shall be affected by delivery of a Notice of Termination (NOT) to the Contractor specifying the effective date of the termination, whether the Contract shall be terminated in whole or in part, and, if applicable, the portion of work to be terminated. The Contractor shall immediately stop work in accordance with the NOT and comply with any other direction as may be specified in the NOT or as provided subsequently by the County.
The County shall pay the Contractor for the work completed and accepted by the County prior to the effective date of the termination, and such payment shall be the Contractor’s sole remedy. Under no circumstances will the Contractor be entitled to anticipatory or unearned profits, consequential damages or other damages of any sort as a result of a termination in whole or in part under this provision. The Contractor shall insert in all subcontracts that the subcontractors shall stop work on the date of and, if applicable, the portion of work to be terminated in a NOT and shall require subcontractors to insert the same condition in any lower tier subcontracts.
STAFFING IMPACT:
N/A
REVIEWING AGENCIES:
OC Probation
ATTACHMENT(S):
Attachment A - Contract MA-080-20010184 with P.H. Hagopian
Contractor, Inc.
Attachment B - Contract Summary Form
Attachment C - Bid Summary
Attachment D - Project Location Map
Attachment E - Public Contract Code Section 22032
Attachment F - Welfare and Institutions Code Sections 1970-1978